Venezuelan Oil: More to USA Less to Blackout Plagued Cuba
PDVSA exported only 10,000 barrels per day to Cuba in the first month of the year, 65% less than in December 2024
HAVANA TIMES – Oil shipments from Venezuela to Cuba fell in January, 2025, to an all-time low of just 10,000 barrels per day (bpd), 65% less than last December, when 29,000 arrived.
Throughout January, the Cuban authorities have warned on several occasions about the lack of fuel and its consequences on energy production. The Unión Eléctrica de Cuba (UNE) has attributed the blackouts to this shortage, which largely affects distributed generation plants.
Last Sunday, just at the end of the month, some provinces, like Cienfuegos, experienced an almost entire day without power, due to the unforeseen departure of the Antonio Guiteras thermoelectric plant from the grid. This was made worse by the “lack of fuel,” according to the official newspaper Granma, which that day reported a national deficit of 1,800 megawatts (MW).
It predicted that, with the synchronization of the Matanzas plant and the replenishment of crude oil, electricity generation could be improved, but none of that happened. The week continued in the same way, with average electricity shortages higher than 1,000 MW and up to 1,500 MW in recent days.
This Tuesday, the estimate was 1,714 MW of deficit, and the detailed report reveals that it is again mainly due to the lack of fuel, with 376 MW affecting 56 distributed generation plants, and four engines of the Turkish patana of Regla out of service. Meanwhile, for what UNE calls “technical limitations,” the lack of availability was “only” 151 MW, including breakdowns in the Guiteras – out of play once again – unit 3 of Santa Cruz del Norte, unit 5 of Nuevitas and 2 of Felton. In addition, due to maintenance, units 2 of Santa Cruz del Norte, 3 and 4 of Cienfuegos, 1 of Felton and 5 of Renté, in Santiago de Cuba, are not in operation.
Venezuela’s oil exports to Cuba in 2024 have been well below shipments in previous years, with a 42% drop compared to 2023. According to Reuters’ annual balance sheet, Venezuela sent an average of 32,000 bpd compared to 56,000 bpd the previous year, which highlights a breach of the agreements signed in 2000 between Hugo Chávez and Fidel Castro. At that time, both leaders agreed on an average of 53,000 bpd, in exchange for Cuban personnel in Venezuela – mainly medical and military – which almost doubled during the best years but has subsequently been progressively falling, forcing Cuba to resort to other allies.
The Island, frequently helped by Iran and Russia, has found its best friend in Mexico, a fitting substitute, among other things, because of proximity. Last year, during the first nine months, Mexico sent 31,300 bpd to Cuba, according to the most recently known data. Pending the annual figures – which Pemex must give to the United States Securities Commission, where it is listed – oil shipments to Cuba from Mexico grew by around 86%, although derivatives decreased by 12%.
Mexico, however, presents other problems, since it is obliged to comply with US laws- unlike Venezuela – and cannot give away oil in the same way. It is still unknown how transactions are being carried out to alleviate the situation on the Island. Cuba’s thermoelectric plants cannot use the national crude oil, which is harmful to the boilers, and the plants have not been adequately maintained for decades. Meanwhile, the population and businesses in Cuba have increasing generation needs.
The reduction in shipments from Venezuela to Cuba coincided, however, with an excellent January for the exports of the Venezuelan state-owned PDVSA, which rose by 15%, to 867,000 bpd. The boost is due in particular to the increase in production by US Chevron, which benefits from a provisional exception in the sanctions decreed by Washington. In addition, there were large sales to China from Venezuela, according to data based on the movements of ships and monitored by Reuters.
Reuters recalls that, although the Biden Administration reinstated sanctions on Venezuelan oil in April 2024, it did renew the licenses granted to Chevron and its partners to sell to the US, Europe and India. Despite his hyperactivity in government announcements and actions, Donald Trump has not announced any change in those conditions, Reuters emphasizes.
In January, Chevron increased Venezuelan oil exports to 294,000 bpd, the highest in its history and more than the 280,000 bpd sold in October 2024. All Chevron shipments went to the United States to be processed in its own refineries and sold to its customers, Reuters reports.
Exports doubled to Europe, going from 30,500 bpd to 63,000 between December and January, while about 60,100 bpd arrived in India, approximately the same amount as always. Far ahead of all destinations is China, which is the largest market for Venezuela, with 442,000 bpd in January, 21% more than the 364,000 bpd in December.
This is the argument that Chevron is using to pressure Donald Trump in its favor. Its executive director, Mike Wirth, said this week in an interview with the Financial Times that it is necessary to maintain the special license, because, otherwise, China and Russia would gain influence in the Western Hemisphere.
“In Venezuela, in particular, what has been seen is that when Western countries leave, companies from China or Russia increase their presence as a result,” he said. According to his studies, he added, the impact on the Venezuelan economy would force more migration.
US Secretary of State Marco Rubio had argued days before that it was necessary to review the licenses that end up “sending billions of dollars to the coffers of the Venezuelan regime” while it “did not fulfill any of the promises it made.”
“Look, we’re running a business. We don’t get involved in foreign policy,” Wirth replied.
Translated by Regina Anavy for Translating Cuba.
The top government officials have electricity and all they what, whole people starve. That is the reality …so believe as you choose
I’ve met with many average Cubans during my vacations in Cuba. Still friends with some. All very good people. I think their government stuck in the past, when was USSR and Brezhnev. China, Vietnam also so called communist countries, but adapted to reality. They need to find diplomatic way to blend into modern economic system, rules.
Circles. Cuba has Nothing to offer BRICS except a stretch out Hand Check out International Island Investor on YouTube and you will understand exactly why CUBA is an economic Desaster!!!!
I guess when you say “we” you mean the USA?
Cuba has tried to join Brics but their request hasn’t been accepted thus far.
I think we should take Cuba over with any means possible maybe maybe military. Those people need help now and are probably ready to get rid of their dictator. Unlike the bay of pigs we should really help them .
Oddly enough there is no mention of Cuba joining Brics or the multi billion dollar infrastructure projects by China.
Cuba survives on tourists. But that won’t last long either. Switzerland and Germany no longer bring their tourists to Cuba, they drive to the Dominican Republic. The service at the moment in Varadero hotels is terrible. The food is bad, the accommodation and everything that is included in it is really very bad. They simply have nothing to offer. I don’t know if they or how much money they get from Sunwing, but I know that I will not buy all-inclusive from Sunwing again.
I am a Canadian who has traveled through the real Cuba many times. Some average Cubans are my good friends. One of my close friends lives in Ciefuegos and is Canadian. He has some money and as such lives a good life, plenty of food and a generator. The truth is, all problems in Cuba are caused by a corrupt government that does care about the people. The beleaguered people cannot rise up in revolution so, the broken system continues.
Cuban government always blames USA when they sit on a rich land capable of producing good food for it’s people. Lift your communist regulations and set them free to negotiate, Cuba libre..!!!
The situation with Cubas thermo electric power is the fault of the Cuban government . For instance yall know that there is a cash deposits of 4 billion dollars which can be used .That amount is inbaxbank account under Gaesa the company that build hotels for cuba. There are hardly any tourists. Why not use that money to re connect the electrical power island wide”again? The cuban government doesnt pay back its loans Sounds like the government is composed of dead-beats not paying bills that are owed
Cuba wants oil but the Castro family won’t use their own billions keep the population in rags while the Castro family lives a great life. Look it up, the kids and grandkids live lavishly around the world. The country needs to drown and start over.
Since Trump wants to put a tarrif on Canadian oil, maybe we can shup some to Cuba in exchange for some of the medicine they produce.
I wish prayers and well meaning sentiments could keep the lights on and run the transport in Cuba…but they can’t. Action is needed and quickly.
I can’t believe someone hasn’t stepped in to help… I guess that’s the sad world we live in now…. At least it makes the thought of dying much easier… Good job everyone
Same old story. Oil tankers in the Havana port but no $ to pay for it.
And polluted water now, sugar factory in Havana polluted the water. ♀️. Having to use water purifier tablets to clean the water, if the people are lucky enough to have.
Regime squeezing the people tighter and tighter.
3,000,000 barrels a day before Chavez came along…and after 25 years…the Chavistas brag that they’ve brought production “up” to 867,000 barrels a day.
And only through Chevron’s help.
It’s absolutely hysterical and tragic at the same time, how the leftist leaders around the world continue to enable this corrupt and incompetent regime.
James. The answer is simple. CUBA HAS NO MONEY TO BUY Oil. The communist government has No idea how to run an economy and has become a nation of beggers foreign investors are defrauded and the little money coming in from tourists is also in jeopardy at the airports of theft !!!
So much especulaciones but the truth of the matter is that, Chevron is Rockefeller, thereby the White House and Congress, must obey !
The questions still remains as to why so much less fuel was sent to Cuba? and Why hasn’t anything been done about it? Also, what is Cuba’s plan to not only resume the 29,000 bpd but to reach the originally agreed upon target of 53,000 bpd and perhaps even more? There are many area in Cuba trying to function on intermittent power, and life in 2025 becomes increasingly difficult when one receives no electricity, or for only one, two, or three hours per day.